Theoretical and practical analyses of innovations by horticultural farmers

記事区分：調査This paper considers three topics: 1) present problems and future trends in agriculture and agricultural policy in Japan, especially for horticultural farming, 2) analytical concepts and models useful for analysis of innovations by horticultural farmers, and 3) review of innovations by six kinds of horticultural farmers, based on a survey. Each topic is dealt with in a single chapter. Chapter 1 explains why Japanese farmers should try to change themselves into entrepreneurs to implement various innovations of their own creation to decrease production costs and improve the quality of farm products as much as possible. International competition for sales of agricultural products will become more serious year by year under the WTO Treaty. Improvements in farm size structure is an important means to decrease production costs, and has been emphasized by the New Agricultural Policy since 1992. However, changes made because of this policy should be promoted based on the principle of mutual aid in villages, not on the principle of market competition recommended by the policy makers. The production of tasty, fresh, healthful food fitted for the preferences of the consumer can be achieved by use of less agricultural chemicals and more organic fertilizer, and by making it possible for town dwellers to visit rural areas for consumption or direct purchase of foods. However, the difference between domestic production costs and imported GIF prices of food will not disappear in the near future. If consumers select food only on the basis of low prices, they will buy more imported food. The result would be to decrease the scale of Japanese agriculture. There would be some loss of various public benefits such as the conservation of the natural resources and environment now promoted by farmers who are not paid for this work. Consumers should recognize that the loss of public benefits may be greater than the gain of private benefits if they chose imported food over domestic food. The Japanese government should attempt to revise the WTO Treaty to allow for preservation of some self-sufficiency in staple foods as well as the conservation of national lands and the environment. In chapter 2, theoretical concepts and models of innovation in farm businesses are considered, with reference to the history of farm business economics. I propose a practical model for analysis of mechanisms by which innovations are made. In chapter 3, I analyze innovation mechanisms based on a survey of six kinds of horticultural farmers. On one orange farm, the farmer is the main creator of innovations to improve the orchard, and he applies them while mechanizing operations. The farm size was expanded to 20 ha and the annual net farm income is now \21 million. In a vineyard, the entrepreneur-farmer focuses on marketing innovation to sell products as fresh grapes, juice, jam, and cake at his own shop and restaurant. More than 100 new grape varieties have been introduced, together with new cultivation practices in response to consumer demand. The farm size is 2.3 ha and the net farm income is \11 million. The three other farms were originally farms for rice monoculture. The farmers are now growing vegetables, flowers, fruit, or mushrooms in addition to rice. Such diversification of the enterprise results in more intensive and efficient use of farmland, labor, and capital goods, increasing the income. The farmers have succeeded in selecting a profitable way for diversification of their enterprise, with expansion of farm size and the introduction of farm practices that conserve the natural environment. One farm of 27.5 ha now produces a net farm income of \19 million. Another farm, of 4.6 ha, gives a net farm income of \16 million. The last farm, with 7.3 ha, produces a net farm income of \14 million. The sixth farm in the survey was a cooperative farm specilizing in the production of green onions. It was organized by four young farmers with a total of 4.6 ha of rented land with a start-up debt of \74 million invested in vinyl greenhouses. The sales have reached \200 million